Michigan’s Business Personal Property Tax Is History
Proposal 1 has passed in Michigan, eliminating the state’s business personal property tax.
It guarantees that Michigan's local jurisdictions have a source of revenue to replace amounts previously collected as business personal property tax – a primary funding source for cities and towns. The proposal aimed to repeal the personal property tax and replace property tax revenues with a portion of the state's six percent use tax collections.
The business personal property tax (PPT) taxed all business equipment and the percentage was determined by local millage rates. The PPT was paid by all business owners, whether they were a retailer, wholesaler, manufacturer or service business.
For more information on this topic, please contact your Lewis & Knopf tax team member.